[Introduced February 15, 2013; referred to the Committee on
Transportation and Infrastructure; and then to the Committee on
Finance .]

____________

A BILL to amend and reenact §11-6D-1, §11-6D-2, §11-6D-3, §11-6D-4,
§11-6D-5, §11-6D-6, §11-6D-7 and §11-6D-9 of the Code of West
Virginia, 1931, as amended, all relating to the tax credit for
alternative-fuel motor vehicles and qualified alternative-fuel
vehicle refueling infrastructure and qualified alternative-
fuel vehicle home refueling infrastructure; setting forth
legislative findings; defining terms; restricting credit to
purchases of and conversions to natural gas-fueled motor
vehicles and liquefied petroleum gas-fueled motor vehicles;
narrowing allowance of credit for alternative-fuel motor
vehicle purchases, alternative-fuel motor vehicle conversions
and alternative-fuel motor vehicle refueling infrastructure;
outlining eligibility for credit and cessation of eligibility for credit for specified construction, purchases,
expenditures, investments, installations or conversions made
on or after cessation dates or tax years as specified;
requiring that not more than one tax credit be granted under
said article six-d, or any combination of articles set forth
in said chapter eleven for purchase of an alternative-fuel
motor vehicle or for costs relating to conversion of a motor
vehicle to an alternative-fuel motor vehicle, or for costs
associated with alternative-fuel vehicle refueling
infrastructure or for costs associated with alternative-fuel
home refueling infrastructure; providing amount of credit for
qualified alternative-fuel vehicle refueling infrastructure;
providing limitations on credit; providing for the termination
of tax credit for alternative-fuel motor vehicles purchased
after December 31, 2017; providing for the termination of tax
credit for motor vehicles converted to operate on alternative
fuel after December 31, 2017; providing for the termination of
tax credit for construction or purchase and installation of
alternative-fuel vehicle refueling infrastructure occurring
after December 31, 2017; providing for the termination of tax
credit for construction or purchase and installation of
qualified alternative-fuel vehicle home refueling
infrastructure occurring in tax years beginning after December 31, 2012; providing for the termination of tax credit for
purchases of motor vehicles that operate on fuels other than
compressed natural gas or liquefied natural gas, or liquefied
petroleum gas, occurring in tax years beginning after December
31, 2012; providing for the termination of tax credit for
conversions of motor vehicles to operate on fuels other than
compressed natural gas or liquefied natural gas or liquefied
petroleum gas occurring in tax years beginning after December
31, 2012; clarifying that provisions applicable to tax years
beginning after December 31, 2012, are retroactive; providing
limitations and restrictions of credit carryover; and
providing that credit is nontransferable.Be it enacted by the Legislature of West Virginia:
That §11-6D-1, §11-6D-2, §11-6D-3, §11-6D-4, §11-6D-5,
§11-6D-6, §11-6D-7 and §11-6D-9 of the Code of West Virginia, 1931,
as amended, be amended and reenacted, all to read as follows:ARTICLE 6D. ALTERNATIVE-FUEL MOTOR VEHICLE TAX CREDIT.§11-6D-1. Legislative findings and purpose.
Consistent with the public policy as stated in section one,
article two-d, chapter twenty-four of this code, the Legislature
hereby finds that the use of natural gas based alternative fuels is
in the public interest and promotes the general welfare of the
people of this state insofar as it addresses serious concerns for our environment and our state's and nation's dependence on foreign
oil as a source of energy. The Legislature further finds that this
state has an abundant supply of alternative fuels and an extensive
supply network and that, by encouraging the use of
alternatively-fuelednatural gas fueled and liquefied petroleum gas
fueled motor vehicles, the state will be reducing its dependence on
foreign oil and attempting to improve its air quality. The
Legislature further finds that the wholesale cost of fuel for
certain alternatively-fuelednatural gas fueled and liquefied
petroleum gas fueled motor vehicles is significantly lower than the
cost of fuelingfuel for traditional motor vehicles. with oil based
fuels
However, because the cost of motor vehicles which utilize
alternative-fuelnatural gas fueled or liquefied petroleum gas
fueled technologies remains high in relation to motor vehicles that
employ more traditional technologies, citizens of this state who
might otherwise choose an alternatively-fueleda natural gas fueled
or liquefied petroleum gas fueled motor vehicle are forced by
economic necessity to continue using motor vehicles that are fueled
by more conventional means. Additionally, the availability of
commercial and residential infrastructure to support
alternatively-fuelednatural gas fueled and liquefied petroleum gas
fueled vehicles available to the public is inadequate to encourage the use of alternatively-fuelednatural gas fueled and liquefied
petroleum gas fueled motor vehicles. It is the intent of the
Legislature that the alternative fuel motor vehicle tax credit
previously expired in 2006 be hereby reinstated with changes and
amendments as set forth herein. Therefore, in order to encourage
the use of alternatively-fuelednatural gas fueled and liquefied
petroleum gas fueled motor vehicles and possibly reduce unnecessary
pollution of our environment and reduce our dependence on foreign
sources of energy, there is hereby created an alternative-fuel
motor vehicles tax credit and an alternative-fuel vehicle refueling
infrastructure tax credit.§11-6D-2. Definitions.
As used in this article, the following terms have the meanings
ascribed to them in this section. Provisions of this section
designated as applicable to tax years beginning after December 31,
2012, are hereby specifically made retroactive.
(a) "Alternative fuel" includes(1) For taxable years beginning on and after January 1, 2011,
but prior to January 1, 2013, the term "alternative fuel" means and
includes:
__________(1)(A) Compressed natural gas;(2)(B)LiquifiedLiquefied natural gas;(3)(C)LiquifiedLiquefiedpetroleum gas;(4)(D) Ethanol;(5)(E) Fuel mixtures that contain eighty-five percent or more
by volume, when combined with gasoline or other fuels, of the
following:(A)(i) Methanol;(B)(ii) Ethanol; or(C)(iii) Other alcohols;(6)(F) Natural gas hydrocarbons and derivatives;(7)(G) Hydrogen;(8)(H) Coal-derived liquid fuels; and(9)(I) Electricity, including electricity from solar energy.(2) For taxable years beginning on and after January 1, 2013,
the term "alternative fuel" means and is limited to:
__________(A) Compressed natural gas;
__________(B) Liquefied natural gas; or(C) Liquefied petroleum gas. (b) "Alternative-fuel motor vehicle" or "qualified motor
vehicle" means a motor vehicle that as a new or retrofitted or
converted fuel vehicle:
(1) Operates solely on one alternative fuel;
(2) Is capable of operating on one or more alternative fuels,
singly or in combination; or
(3) Is capable of operating on an alternative fuel and is also capable of operating on gasoline or diesel fuel.
(c) "Bi-fueled" motor vehicle means a motor vehicle fueled
from two or more tanks, each of which stores a separate type of
fuel, which has the ability of an alternative-fuel motor vehicle to
operate on an alternative fuel and another form of fuel. Bi-fueled
motor vehicles as here defined are alternative fuel motor vehicles. (d) "Liquefied petroleum gas" means fuel commonly known and
designated as "liquefied petroleum gas" or "LP gas." The term
"liquefied petroleum gas" also means and includes:
__________(1) Propane;
__________(2) Butane; or
__________(3) A mix of gasses used as motor fuel which is predominantly
propane or butane, or predominantly a mixture of propane and
butane.
__________(d)(e) "Plug-in hybrid electric vehicle" means:
(1) A plug-in hybrid electric vehicle manufactured by an
established motor vehicle manufacturer of plug-in hybrid electric
vehicles that can operate solely on electric power and that is
capable of recharging its battery from an on-board generation
source and an off-board electricity source; and
(2) A plug-in hybrid electric vehicle conversion that provides
an increase in city fuel economy of seventy-five percent or more as
compared to a comparable nonhybrid version vehicle for a minimum of twenty miles and that is capable of recharging its battery from an
on-board generation source and an off-board electricity source. A
vehicle is comparable if it is the same model year and the same
vehicle class as established by the United States Environmental
Protection Agency and is comparable in weight, size and use. Fuel
economy comparisons shall be made using city fuel economy standards
in a manner that is substantially similar to the manner in which
city fuel economy is measured in accordance with procedures set
forth in 40 C.F.R. 600 as in effect on January 1, 2011.(e)(f) "Qualified alternative fuel vehicle refueling
infrastructure" means property owned by the applicant for the tax
credit and used for storing alternative fuels and for dispensing
such alternative fuels into fuel tanks of motor vehicles,
including, but not limited to, natural gas supply lines,
compression equipment, storage tanks and dispensing units for
alternative fuel at the point where the fuel is delivered into a
motor vehicle for consumption:Provided, That the property is
installed and located in this state and is not located in or on a
private residence or private home.(f)(g) "Qualified alternative fuel vehicle home refueling
infrastructure" means property owned by the applicant for the tax
credit located on a private residence or private home and used for
storing alternative fuels and for dispensing such alternative fuels into fuel tanks of motor vehicles, including, but not limited to,
compression equipment, storage tanks and dispensing units for
alternative fuel at the point where the fuel is delivered or for
providing electricity to plug-in hybrid electric vehicles or
electric vehicles: Provided, That the property is installed and
located in this state.(g)(h) "Taxpayer" means any natural person, corporation,
limited liability company or partnership subject to the tax imposed
under article twenty-one, article twenty-three or article
twenty-four of this chapter or any combination thereof.§11-6D-3. Credit allowed for alternative-fuel motor vehicles and
qualified alternative fuel vehicle refueling
infrastructure; application against personal income
tax, business franchise tax or corporate net income
tax; effective date.
The tax credits for the purchase of alternative-fuel motor
vehicles or conversion to alternative-fuel motor vehicles,
qualified alternative fuel vehicle refueling infrastructure and
qualified alternative fuel vehicle home refueling infrastructure
provided in this article may be applied against the tax liability
of a taxpayer imposed by the provisions of either article
twenty-one, article twenty-three or article twenty-four of this chapter, but in no case may more than one tax credit be granted
under this article or any combination of articles set forth in this
chapter for the samepurchase of an alternative-fuel motor vehicle
or for costs relating to conversion to an alternative-fuel motor
vehicle, or for costs associated with alternative fuel vehicle
refueling infrastructure or for costs associated with alternative
fuel home refueling infrastructure as defined in subdivision (b),
section two of this article. This credit shall be available for
those tax years beginning on or after January 1, 2011, but shall
not be available for, or with relation to, any purchase,
expenditure, investment, installation, construction, or conversion
made in any tax year beginning after the termination dates
specified in this article, as applicable to specified purchases,
expenditures, investments, installations, construction, or
conversions.§11-6D-4. Eligibility for credit.
A taxpayer is eligible to claim the credit against tax
provided in this article if he or shethe taxpayer:
(a) Converts a motor vehicle that is presently registered in
West Virginia to operate exclusively on an alternative fuel as
defined in subdivision (a), section two of this article or to
operate as a bi-fueled alternative-fuel motor vehicle; or
(b) Purchases from an original equipment manufacturer or an after-market conversion facility or any other automobile retailer,
a new dedicated alternative-fuel motor vehicle or bi-fueled
alternative-fuel motor vehicle for which the taxpayer then obtains
a valid West Virginia registration; or
(c) Constructs or purchases and installs qualified alternative
fuel vehicle refueling infrastructure or qualified alternative fuel
vehicle home refueling infrastructure that is capable of dispensing
alternative fuel for alternative-fuel motor vehicles.
(d) (1) The credit provided in this article is not available
to and may not be claimed by any taxpayer under any obligation
pursuant to any federal or state law, policy or regulation to
convert to the use of alternative fuels for any motor vehicle.(2) The credit provided in this article is not available to
and may not be claimed by any taxpayer for construction or purchase
or installation of alternative fuel vehicle home refueling
infrastructure in any tax year beginning after December 31, 2012.
This provision is hereby specifically made retroactive.
__________(e) The credit provided in this article for purchase of an
alternative fuel motor vehicle or conversion of a motor vehicle to
an alternative fuel motor vehicle, is not available to and may not
be claimed by any taxpayer in, or for, any tax year in which the
taxpayer did not own the alternative fuel motor vehicle for which
the claim is filed on the last day of the taxpayer's tax year for which the credit is claimed.
__________(f) Effective date.
__________(1) The amendments to this article enacted in the 2013 Regular
Legislative Session shall be effective upon passage.
__________(A) Those provisions set forth in amendments to this article
enacted in the 2013 Regular Legislative Session and specified as
operative upon a specified date shall be applied accordingly.
__________(B) Those provisions set forth in amendments to this article
enacted in the 2013 Regular Legislative Session and specified as
retroactive shall be applied accordingly.§11-6D-5. Amount of credit for alternative fuel motor vehicles. (a) For taxable years beginning on and after January 1, 2011,
but prior to termination or cessation of this credit as specified
in this article, the amount of the credit allowed under this
article for an alternative-fuel motor vehicle that weighs less than
twenty-six thousand pounds is thirty-five percent of the purchase
price of the alternative-fuel motor vehicle up to a maximum amount
of $7,500 or fifty percent of the actual cost of converting from a
traditionally fueled motor vehicle to an alternative fuel motor
vehicle up to a maximum amount of $7,500.
(b) For taxable years beginning on and after January 1, 2011,
but prior to termination or cessation of this credit as specified
in this article, the amount of the credit allowed under this article for an alternative-fuel motor vehicle that weighs more than
twenty-six thousand pounds is thirty-five percent of the purchase
price of the alternative-fuel motor vehicle up to a maximum amount
of $25,000 or fifty percent of the actual cost of converting from
a traditionally fueled motor vehicle to an alternative fuel motor
vehicle up to a maximum amount of $25,000.§11-6D-6. Amount of credit for qualified alternative fuel vehicle
refueling infrastructure and qualified alternative
fuel vehicle home refueling infrastructure.
(a) For taxable years beginning on and after January 1, 2011,
but prior to January 1, 2014, the amount of the credit allowed
under this article for qualified alternative fuel vehicle refueling
infrastructure is equal to an amount of fifty percent of the total
costs directly associated with the construction or purchase and
installation of the alternative fuel vehicle refueling
infrastructure up to a maximum of $250,000: Provided, That if the
qualified alternative fuel vehicle refueling infrastructure is
generally accessible for public use, the amount of the credit
allowed will be multiplied by 1.25 and the maximum amount allowable
will be $312,500. The amount of credit allowed may not exceed the
cost of construction of the alternative fuel vehicle refueling
infrastructure.
(b) For taxable years beginning on and after January 1, 2014, but prior to January 1, 2016termination or cessation of this
credit as specified in this article, the amount of the credit
allowed under this article for qualified alternative fuel vehicle
refueling infrastructure is equal to an amount of fiftytwenty
percent per facility of the total costs directly associated with
the construction or purchase and installation of the alternative
fuel vehicle refueling infrastructure up to a maximum of $200,000
$400,000 per facility.Provided, That if the qualified alternative
fuel vehicle refueling infrastructure is generally accessible for
public use, the amount of the credit allowed will be multiplied by
1.25 and the maximum amount allowable will be $250,000. The amount
of credit allowed may not exceed the cost of construction of the
alternative fuel vehicle refueling infrastructure(c) For taxable years beginning on and after January 1, 2016,
but prior to January 1, 2022, the amount of the credit allowed
under this article for qualified alternative fuel vehicle refueling
infrastructure is equal to an amount of fifty percent of the total
costs directly associated with the construction or purchase and
installation of the alternative fuel vehicle refueling
infrastructure up to a maximum of $150,000: Provided, That if the
qualified alternative fuel vehicle refueling infrastructure is
generally accessible for public use, the amount of the credit
allowed will be multiplied by 1.25 and the maximum amount allowable will be $187,500. The amount of credit allowed may not exceed the
cost of construction of the alternative fuel vehicle refueling
infrastructure.(d) For taxable years beginning on and after January 1, 2011,
the amount of the credit allowed under this article for qualified
alternative fuel vehicle home refueling infrastructure is equal to
an amount of fifty percent of the total costs directly associated
with the construction or purchase and installation of the
alternative fuel vehicle home refueling infrastructure up to a
maximum of $10,000.(e)(c) The cost of construction of the alternative fuel
vehicle refueling infrastructure or alternative fuel vehicle home
refueling infrastructure eligible for a tax credit under this
sectionarticle does not include costs associated with exploration,
development or production activities necessary for severing natural
resources from the soil or ground.(f)(d) When the taxpayer is a pass-through entity treated
like a partnership for federal and state income tax purposes, the
credit allowed under this article for the year shall flow through
to the equity owners of the pass-through entity in the same manner
that distributive share flows through to the equity owners and in
accordance with any legislative rule the Tax Commissioner may
propose for legislative approval in accordance with article three, chapter twenty-nine-a of this code to administer this section.(g)(e) No credit allowed by this article may be applied
against employer withholding taxes imposed by article twenty-one of
this chapter.§11-6D-7. Duration of availability of credit.(a) No person is eligible to receive a tax credit under this
article for:
(1) An alternative-fuel motor vehicle purchased after December
31, 20212017;
(2) A vehicle converted to an alternative-fuel motor vehicle
after December 31, 20212017;or
(3) The construction or purchase and installation of qualified
alternative fuel vehicle refueling infrastructure or qualified
alternative fuel vehicle home refueling infrastructure occurring
after December 31, 20212017;
_____(4) The construction or purchase and installation of qualified
alternative fuel vehicle home refueling infrastructure occurring in
tax years beginning after December 31, 2012;
_____(5) Purchases of motor vehicles that operate on fuels other
than compressed natural gas, liquefied natural gas or liquefied
petroleum gas, occurring in tax years beginning after December 31,
2012; or
_____(6) Conversions of motor vehicles to operate on fuels other than compressed natural gas, liquefied natural gas or liquefied
petroleum gas, occurring in tax years beginning after December 31,
2012.
_____(b) The provisions of this section that are applicable to tax
years beginning after December 31, 2012, are hereby specifically
made retroactive.§11-6D-9. Carryover credit allowed; recapture of credit.
(a) If the tax credit allowed under this article in anythe
first taxable year in which the tax credit is allowable to offset
tax exceeds the taxpayer's tax liability as determined in
accordance with article twenty-one, article twenty-three orand
article twenty-four of this chapter for that taxable year, the
excess may be applied for not more than the two next succeeding
taxable years until the full amount of the excess tax credit is
used or the end of the second next succeeding taxable year,
whichever occurs first. Any excess credit remaining at the end of
the second next succeeding taxable year shall be forfeited. (b) No carry back to a prior taxable year is allowed for the
amount of any unused credit in any taxable year.
(c) A tax credit is subject to recapture, elimination or
reduction if it is determined by the State Tax Commissioner that a
taxpayer was not entitled to the credit, in whole or in part, in
the tax year in which it was claimed by the taxpayer. The amount of credit that flows through to equity owners of a passthrough
pass-through entity may be recaptured or recovered from either the
taxpayer or the equity owners in the discretion of the Tax
Commissioner.(d) The tax credit allowed under this article may not be sold,
transferred or assigned to any person or entity. The tax credit
allowed under this article does not attach to or follow the
qualified motor vehicle or qualified infrastructure upon sale,
resale, transfer, assignment or any other change of ownership of
such vehicle or infrastructure. Credit shall not be available to
any successor owner of any qualified motor vehicle or any qualified
infrastructure property for which the credit was available to the
original owner or predecessor owner.

NOTE: The purpose of this bill is to refine, revise and
modernize the alternative fuel motor vehicle infrastructure credit
and alternative fuel motor vehicle credit to more closely align the
code with specific intended economic development goals and
budgetary goals.

Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.